MCA vide Notification No. G.S.R. 93 dated 01/02/2021 has issued Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2021 thereby further amending Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 wherein, in Rule 25, the following new sub-rule (1A) after sub-rule (1) is inserted :
(1A) – A scheme of merger or amalgamation under section 233 of the Act may be entered into between any of the following class of companies, namely:- (i) two or more start-up companies; or (ii) one or more start-up company with one or more small company. Explanation– For the purposes of this sub-rule, “start-up company” means a private company incorporated under the Companies Act, 2013 or Companies Act, 1956 and recognised as such in accordance with notification number G.S.R. 127 (E), dated the 19th February, 2019 issued by the Department for Promotion of Industry and Internal Trade.